3 Tips to Better Manage a Subscription-Based Business

By Cherie Nelson

Global sales in the music industry rose 0.3 percent from year-to-year in 2012, the first increase since 1999, according to the International Federation of the Phonographic Industry. Revenues dropped 3.9 percent globally the following year due to Japan, the world’s second-largest music market, experiencing a sharp 16.7 percent decline in sales that year. Steve McClure, writing for the Japan Times, said the country’s failure to embrace digital music subscription services like Spotify and Rdio is the primary culprit for the steep drops in revenues.

The subscription-based business model saved the music industry from imminent demise, and has subsequently attracted the attention of startup entrepreneurs. Granted recurring revenue models for businesses are nothing new. But the consumption of goods in American households has decreased over the past 20 years, while service consumption has risen, according to data compiled by the Economist.

The most successful subscription-based businesses today are utilizing all the latest technology and tools, while still providing good old-fashioned customer service. There are no hard-and-fast rules to ensure a profitable enterprise, but these guidelines can help steer you in the right direction.

Billing and Compliance

Whether you collect monthly or annual dues, managing the collection process can get complicated. Netflix, for instance, offers at …read more

Via:: Music Think Tank

Monkey Mike

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